Discounted Cash Flow (DCF) Analysis Levered

Corning Incorporated (GLW)

$32.85

+0.19 (+0.58%)

All numbers are in Millions, Currency in USD

Stock DCF: 19.05 | 32.85 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	11,290	11,503	11,303	14,082	14,189	15,093.34	16,055.32	17,078.62	18,167.13	19,325.02
Revenue (%)
Operating Cash Flow	2,919	2,031	2,180	3,412	2,615	3,183.40	3,386.30	3,602.13	3,831.71	4,075.92
Operating Cash Flow (%)
Capital Expenditure	-2,310	-1,987	-1,377	-1,637	-1,604	-2,198.99	-2,339.14	-2,488.23	-2,646.81	-2,815.51
Capital Expenditure (%)
Free Cash Flow	609	44	803	1,775	1,011	984.42	1,047.16	1,113.90	1,184.89	1,260.41

Weighted Average Cost Of Capital

Share price	$ 32.85
Beta	1.068
Diluted Shares Outstanding	844
Cost of Debt
Tax Rate	26.77
After-tax Cost of Debt	3.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.423
Total Debt	6,911
Total Equity	27,725.40
Total Capital	34,636.40
Debt Weighting	19.95
Equity Weighting	80.05
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	11,290	11,503	11,303	14,082	14,189	15,093.34	16,055.32	17,078.62	18,167.13	19,325.02
Operating Cash Flow	2,919	2,031	2,180	3,412	2,615	3,183.40	3,386.30	3,602.13	3,831.71	4,075.92
Capital Expenditure	-2,310	-1,987	-1,377	-1,637	-1,604	-2,198.99	-2,339.14	-2,488.23	-2,646.81	-2,815.51
Free Cash Flow	609	44	803	1,775	1,011	984.42	1,047.16	1,113.90	1,184.89	1,260.41
WACC
PV LFCF						916.93	908.51	900.16	891.89	883.69
SUM PV LFCF										4,501.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.36
Free cash flow (t + 1)	1,285.62
Terminal Value	23,985.50
Present Value of Terminal Value	16,816.53

Intrinsic Value

Enterprise Value	21,317.70
Net Debt	5,240
Equity Value	16,077.70
Shares Outstanding	844
Equity Value Per Share	19.05